FG Reduces Interest Charges on Late Tax Payments From October 1

The Federal Ministry of Finance says interest charged on overdue tax payments will be reduced from October 1, 2026, under the Nigeria Tax Administration (Interest on Late Payment of Tax) Order, 2026. For taxes payable in naira, the new rate will be the Central Bank of Nigeria’s Monetary Policy Rate plus one percentage point. It will not be lower than the yield on 364-day Treasury bills. This replaces the previous rate of the MPR plus five percentage points. For foreign-currency tax liabilities, interest will be charged at the Secured Overnight Financing Rate plus six percentage points. Interest will be calculated daily as simple interest until payment is made, while the existing 10 per cent late-payment penalty remains unchanged. The order applies to taxpayers dealing with the Nigeria Revenue Service and state or FCT tax authorities. It also allows penalties or interest to be waived where there is good cause under the law.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.